Market Forces blog + Ashmore | The Guardianhttps://www.theguardian.com/business/marketforceslive+ashmoregroup
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FTSE 100 on course for new record but William Hill warns on profitshttps://www.theguardian.com/business/marketforceslive/2017/jan/09/ftse-100-on-course-for-new-record-but-william-hill-warns-on-profits
<p>Bookmaker said it was hit by unfavourable football and racing results in December</p><p>Leading shares are on course for an eighth successive closing high, equalling the record set in 1997.</p><p>The <strong>FTSE 10</strong><strong>0</strong> is currently up 17.83 points at 7227.88, as the slump in sterling following Theresa May’s latest hints at a hard Brexit boosted overseas earnings. Mining shares are among the gainers, with <strong>Glencore</strong> up 7.05p at 295.50p and <strong>Anglo American</strong> adding 24.5p at 1159.5p.</p><p>Today’s announcement confirms that more shares have been sold to the institutions through the trading plan and the taxpayer is no longer the largest shareholder in Lloyds. The taxpayer stake has now fallen below 6%.</p><p>Retail investors had the disappointment of being denied involvement in a Lloyds share sale, although there is still time and plenty of opportunity to rectify this with the remaining [near] £2bn stake.</p><p>We like Babcock’s unique market position and high barriers to entry but downgrade to Hold as we do not see enough upside at this time. The stock is not expensive, leaving room for some price recovery on e.g. contract news, but in our view investors will need to see repeated strong reporting for a material and sustainable re-rating. While cash generation has been good, certain drags mean the valuation on cash metrics looks less attractive than on earnings multiples. Organic growth should improve next year, however we remain cautious on UK outsourcing as a whole and are not prepared to assume a return to previously seen growth levels.</p><p>Whilst a profit warning on the back of a gross margin miss should not be overstated, this is the 3rd warning in 12 months and focuses us once again on William Hill’s near term shortcomings, including UK retail exposure, losing market share online and the lack of a permanent CEO.</p><p>We can forgive a run of poor sporting results. An unbroken run of Chelsea wins in the period covered by today’s announcement, for example, won’t have been enjoyable for any of the bookies and is clearly beyond William Hill’s control.</p><p>The bigger problem is that while performance in the online division is improving, it’s doing so at a snail’s pace. With the distracting merger talks of last year now behind it, the group seems to be knuckling down to the job of sorting out the core business. Hopefully, the renewed focus and improving trends will start to deliver some results.</p><p>Management pointed to an ongoing improvement in wagering in Online and also in its Australian business through its second half. So operationally, there are some signs of recovery.</p><p>But as expected, the group was hit by a particularly weak run of results through December across Football (not just the Premier League) and Racing. On Boxing Day, for example, the top 6 Premier League teams all won, as did the favourite in the King George V1 Chase. As a result, operating profit for 2016 will come in at “around£260m”, right at the bottom of its guidance range,which compares with our £275.2m forecast.</p><p>We remain cautious on EM-exposed names, given rising US yields and deteriorating EM sentiment after the US elections.</p> <a href="https://www.theguardian.com/business/marketforceslive/2017/jan/09/ftse-100-on-course-for-new-record-but-william-hill-warns-on-profits">Continue reading...</a>BusinessStock marketsGlencoreAnglo AmericanLloyds Banking GroupBabcock InternationalCapitaWilliam HillAshmoreMon, 09 Jan 2017 10:18:19 GMThttp://www.theguardian.com/business/marketforceslive/2017/jan/09/ftse-100-on-course-for-new-record-but-william-hill-warns-on-profitsPhotograph: Martin Dalton/REX/ShutterstockPhotograph: Martin Dalton/REX/ShutterstockNick Fletcher2017-01-09T10:18:19ZFTSE 100 slips ahead of US jobs data while Tate warns on profits againhttps://www.theguardian.com/business/marketforceslive/2015/feb/06/ftse-100-slips-ahead-of-us-jobs-data-while-tate-warns-on-profits-again
<p>Investors cautious as Greece uncertainties continue and UK trade deficit widens</p><p>Leading shares have drifted lower ahead of the US jobs figures later, with Greek uncertainties remaining, and another profit warning from <strong>Tate &amp; Lyle</strong> to add to the nervous mood.</p><p>The <strong>FTSE 100</strong> is currently down 26.42 points at 6839.51 as investors await the non-farm payroll numbers from across the Atlantic, with around 234,000 jobs expected to have been added last month. News that the UK’s trade deficit widened by more than expected in December, thanks to imports of cheap oil, has not helped.</p><p>A third warning inside 12 months leads us to downgrade 2015 by 7% and 2016 by 18%. Bulk is underdelivering and supply chain issues are now revealed to have done permanent damage. We think the dividend is sustainable, which should provide support at around 550p, our new price target. But there are otherwise few immediate positives on this chilly February morning.</p><p>We expect Tate to have a rough morning. Worth bearing in mind, then, is that this remains a soundly-financed and well-invested business, with a coherent strategy and a growth track record in its core. The problems remain primarily those of execution, which should be fixable. But that fix must come, and come soon.</p><p>We cut Barratt from buy to hold as we no longer see enough upside. Barratt’s management has done a great job in transforming the company, working out of old land onto new land while reducing the balance sheet. Its London and South East exposure is around 40% of sales, which is positive because this area has seen the UK’s best job creation. To be more positive we need more clarity on volume ambitions beyond 2016 and returns to rise more quickly. </p><p>Whilst this framework inclusion may be seen as a positive for Capita, we take the view that, as with most other re-procurement activities, margins under existing contracts are likely to decline as contracts are rolled over, with risk that competition for contracts is at a higher level. This does not of course indicate, or guarantee, any additional work for Capita. </p><p>The negative performance of emerging markets in recent quarters and the resultant weak sentiment towards these markets leave Aberdeen and Ashmore trading at a discount to both their two-year and five-year ratings. </p><p>We maintain our buy [rating] on Ashmore ....and raise our rating on Aberdeen to buy [from hold], reflecting a discounted valuation and the potential for yield enhancement. </p><p>Importantly a positive overall survival benefit in the COMBI-d study forms part of the oncology asset sale to Novartis, $1.5bn contingent consideration determined by a positive overall survival outcome. This puts the final price paid by Novartis for GlaxoSmithKline’s oncology assets to $16bn, £4bn of which is due to be returned to investors via a B Share scheme following completion of the asset swap which also includes Glaxo’s purchase of Novartis’ Vaccines unit and the establishment of a Consumer Health joint venture controlled by Glaxo.<strong> <br></strong></p><p>The long awaited COMBI-d study reads out positively. This positive outcome will also trigger a $1.5bn earn-out from the disposal of the Oncology unit to Novartis, when it completes. Without a firm outlook in place and 2015 remaining a transitional year, it is too early to advocate putting new money in GlaxoSmithKline; we make no changes to forecast and re-iterate our hold recommendation.</p> <a href="https://www.theguardian.com/business/marketforceslive/2015/feb/06/ftse-100-slips-ahead-of-us-jobs-data-while-tate-warns-on-profits-again">Continue reading...</a>BusinessTate and LyleBarratt DevelopmentsCapitaAberdeen Asset ManagementAshmoreGlaxoSmithKlineFri, 06 Feb 2015 09:52:10 GMThttp://www.theguardian.com/business/marketforceslive/2015/feb/06/ftse-100-slips-ahead-of-us-jobs-data-while-tate-warns-on-profits-againPhotograph: Rex FeaturesPhotograph: Rex FeaturesNick Fletcher2015-02-06T09:52:10ZVodafone dips on talk of Liberty Global interest, helping push FTSE 100 lowerhttps://www.theguardian.com/business/marketforceslive/2014/sep/11/vodafone-talk-liberty-global-ftse-down
Investors cautious after disappointing Chinese inflation and US jobs claims figures<p>As markets fell back on a number of factors, <strong>Vodafone</strong> lost ground following reports it could be interested in Liberty Global, which is Europe's biggest cable operator.</p><p>According to Bloomberg Vodafone said that Liberty - which owns Virgin Media - could be a good fit at the right price. Liberty, controlled by billionaire John Malone, is currently valued at around $33bn while Vodafone is worth around £50bn (87bn).</p> <a href="https://www.theguardian.com/business/marketforceslive/2014/sep/11/vodafone-talk-liberty-global-ftse-down">Continue reading...</a>BusinessVodafoneSSEStandard LifeRoyal Bank of ScotlandLloyds Banking GroupFresnilloAntofagastaNextITVHome RetailAshmoreThu, 11 Sep 2014 16:14:37 GMThttp://www.theguardian.com/business/marketforceslive/2014/sep/11/vodafone-talk-liberty-global-ftse-downNick Fletcher2014-09-11T16:14:37ZFTSE slips despite Scottish shares reviving, with Next leading the fallershttps://www.theguardian.com/business/marketforceslive/2014/sep/11/ftse-scottish-shares-revival-next-falls
Retailer's results come in below expectations, sending shares lower<p>Despite Scottish shares mounting a mini-revival after a new poll, markets have edged lower as nervousness about the referendum in a week's time and the global outlook continues.</p><p>The poll - for the Daily Record - showed a majority against independence ahead of the vote. Andy McLevey at Interactive Investor said:</p> <a href="https://www.theguardian.com/business/marketforceslive/2014/sep/11/ftse-scottish-shares-revival-next-falls">Continue reading...</a>BusinessNextAntofagastaAnglo AmericanOcadoMorrisonsHome RetailARMAshmoreRoyal Bank of ScotlandLloyds Banking GroupStandard LifeSSEThu, 11 Sep 2014 08:50:14 GMThttp://www.theguardian.com/business/marketforceslive/2014/sep/11/ftse-scottish-shares-revival-next-fallsNick Fletcher2014-09-11T08:50:14ZFTSE lifted as City speculates on BSkyB bid and Diageo move for Beamhttps://www.theguardian.com/business/marketforceslive/2014/jan/14/ftse-lifted-bskyb-bid-talk-diageo-beam
Leading shares hit new two and a half month high despite worries about Fed moves<p>On a day when the market was searching for direction, things were livened up by a spate of merger speculation.</p><p>After the $16bn bid for US bourbon maker Jim Beam by Japan's Suntory, analysts were suggesting that <strong>Diageo</strong> or Pernod should step in to break up the party. Liberum's Pablo Zuanic said:</p> <a href="https://www.theguardian.com/business/marketforceslive/2014/jan/14/ftse-lifted-bskyb-bid-talk-diageo-beam">Continue reading...</a>BusinessDiageoSky plcAstraZenecaShireHargreaves LansdownSchrodersAberdeen Asset ManagementAshmoreIntertekQinetiQBalfour BeattyTue, 14 Jan 2014 16:54:46 GMThttp://www.theguardian.com/business/marketforceslive/2014/jan/14/ftse-lifted-bskyb-bid-talk-diageo-beamNick Fletcher2014-01-14T16:54:46ZAstraZeneca adds 2% on upbeat forecasts, but FTSE faltershttps://www.theguardian.com/business/marketforceslive/2014/jan/14/astrazeneca-upbeat-outlook-ftse-falls
Leading shares slip back after Wall Street decline on Fed fears and US results<p>With markets under the cosh in early trading, pharmaceuticals group <strong>AstraZeneca</strong> is a notable exception.</p><p>The company said it was likely to return to growth faster than analysts had expected. It has been suffering from a number of key drugs losing patent protection amid concerns about its future pipeline.</p> <a href="https://www.theguardian.com/business/marketforceslive/2014/jan/14/astrazeneca-upbeat-outlook-ftse-falls">Continue reading...</a>BusinessAstraZenecaSchrodersAberdeen Asset ManagementAshmoreSky plcTue, 14 Jan 2014 09:34:34 GMThttp://www.theguardian.com/business/marketforceslive/2014/jan/14/astrazeneca-upbeat-outlook-ftse-fallsNick Fletcher2014-01-14T09:34:34ZFTSE hits four week high as Syrian tensions ease, but GlaxoSmithKline falls on competition fearshttps://www.theguardian.com/business/marketforceslive/2013/sep/10/ftse-syria-glaxosmithkline-competition
Pharmaceutical group faces possible generic rivals to its Advair lung treatment after US draft guidance<p>Leading shares moved higher on more good economic data from China and hopes of a resolution to the Syrian dispute.</p><p>But <strong>GlaxoSmithKline</strong> missed out on the gains, falling 41.5p to 1598.5p on the prospective arrival of generic copies of its lung treatment Advair in the US, after draft guidance from regulators set out requirements for competitors.</p> <a href="https://www.theguardian.com/business/marketforceslive/2013/sep/10/ftse-syria-glaxosmithkline-competition">Continue reading...</a>BusinessGlaxoSmithKlineReckitt BenckiserInternational Airlines GroupeasyJetRandgold ResourcesFresnilloGlencoreWhitbreadBGAshmoreARMTue, 10 Sep 2013 16:01:23 GMThttp://www.theguardian.com/business/marketforceslive/2013/sep/10/ftse-syria-glaxosmithkline-competitionNick Fletcher2013-09-10T16:01:23ZBid talk helps FTSE move ahead, with Centrica and United Utilities among the risershttps://www.theguardian.com/business/marketforceslive/2012/sep/19/centrica-united-utilities-ftse-rises
Reheated takeover talk on both British Gas owner and water group keeps their shares in the spotlight<p>A spate of speculation helped a nervous market end the day on a positive note, despite continuing worries about the eurozone crisis.</p><p>Reheated takeover talk sent shares in British Gas owner <strong>Centrica</strong> higher with an unusually large volume of shares traded. Gazprom has been tipped in the past as a possible predator, and the Russian energy group's name was back in the frame again, although political considerations would surely play a role here. An alternative story concerned interest from Qatar. The country signed a liquefied natural gas deal last year, which prompted <a href="http://www.guardian.co.uk/business/marketforceslive/2011/may/11/centrica-up-on-vague-bid-talk?INTCMP=SRCH" title="">some analysts to suggest its sovereign wealth fund could end up taking a stake in Centrica to cement their links</a>.</p> <a href="https://www.theguardian.com/business/marketforceslive/2012/sep/19/centrica-united-utilities-ftse-rises">Continue reading...</a>BusinessCentricaUnited UtilitiesSevern TrentPennonAvivaBarclaysHSBCBPAstraZenecaSageSmiths GroupAshmoreMichael Page InternationalWed, 19 Sep 2012 16:13:49 GMThttp://www.theguardian.com/business/marketforceslive/2012/sep/19/centrica-united-utilities-ftse-risesNick Fletcher2012-09-19T16:13:49ZRBS and Lloyds lead FTSE 100 higher after German court rulinghttps://www.theguardian.com/business/marketforceslive/2012/sep/12/royal-bank-lloyds-lead-ftse-higher
Banks move higher on positive eurozone developments, but Icap drops after demotion and downgrade<p>Banks are leading the market higher after the German constitutional court ruled in favour of the proposed eurozone bailout fund, albeit with expected conditions.</p><p><strong>Royal Bank of Scotland</strong> has risen 9p to 273.7p as Liberum Capital issued a buy note on the bank, following positive noises from JP Morgan Cazenove earlier in the week.</p> <a href="https://www.theguardian.com/business/marketforceslive/2012/sep/12/royal-bank-lloyds-lead-ftse-higher">Continue reading...</a>BusinessRoyal Bank of ScotlandLloyds Banking GroupBarclaysSageKingfisherIcapAshmoreAdmiralWed, 12 Sep 2012 08:45:15 GMThttp://www.theguardian.com/business/marketforceslive/2012/sep/12/royal-bank-lloyds-lead-ftse-higherNick Fletcher2012-09-12T08:45:15ZAshmore and Icap in danger of dropping out of FTSE 100 at latest reshufflehttps://www.theguardian.com/business/marketforceslive/2012/sep/11/ashmore-icap-ftse-wood-group-melrose
Quarterly review to be based on Tuesday night's price, with Wood Group and Melrose currently in line to join leading index<p><strong>Ashmore</strong>, the fund management group which specialises in emerging markets, has unveiled a dip in full year profits, which is unlikely to help it maintain its place in the FTSE 100.</p><p>The latest quarterly changes in the leading index are announced on Wednesday but based on tonight's closing prices. At the moment Ashmore is in danger of being demoted to the mid-cap index, as is interdealer broker <strong>Icap</strong>.</p> <a href="https://www.theguardian.com/business/marketforceslive/2012/sep/11/ashmore-icap-ftse-wood-group-melrose">Continue reading...</a>BusinessIcapAshmoreWood GroupMelroseTue, 11 Sep 2012 10:14:10 GMThttp://www.theguardian.com/business/marketforceslive/2012/sep/11/ashmore-icap-ftse-wood-group-melroseNick Fletcher2012-09-11T10:14:10ZCable & Wireless Communications unwanted assets worth more than whole company, says Merrillhttps://www.theguardian.com/business/marketforceslive/2012/jul/12/cable-wireless-communications-upgrade
Analysts turn positive on business on prospects of sale of Monaco and Macau businesses and upturn in trading<p><strong>Cable &amp; Wireless Communications</strong> has been on the slide for some time.</p><p>As its demerged partner Cable &amp; Wireless Worldwide saw its value boosted by a successful bid from Vodafone, CWC has fallen close to an all time low. But now the City believes it could be turning the corner. Not only is trading expected to improve, but it has the potential to sell businesses for more than its current beaten-down market capitalisation. Long term bear of the shares, analyst Wilton Fry of Bank of America/Merrill Lynch, has now become more optimistic, moving his recommendation from underperform to buy with a 40p price target. He said:</p> <a href="https://www.theguardian.com/business/marketforceslive/2012/jul/12/cable-wireless-communications-upgrade">Continue reading...</a>BusinessCable & Wireless CommunicationsAshmoreEurasian Natural Resources CorporationRio TintoSky plcAegisWPPG4SInterContinental HotelsSuperGroupThu, 12 Jul 2012 16:00:07 GMThttp://www.theguardian.com/business/marketforceslive/2012/jul/12/cable-wireless-communications-upgradeNick Fletcher2012-07-12T16:00:07ZAshmore exults as Man Group faltershttps://www.theguardian.com/business/marketforceslive/2012/apr/05/ashmore-exults-as-man-group-falters
Fund managers have widely divergent fortunes as top riser and faller on the FTSE 100<p>Ashmore, the fund manager that invests in emerging market debt, shot to the top of the FTSE 100 leaderboard following a glowing broker note from UBS.</p><p>The bank analysts said Ashmore's shares had underperformed (losing 5% compared with its peers), while its funds had outperformed. They expect it to grow as emerging markets live up to their name and become more significant players in global financial markets. They said:</p> <a href="https://www.theguardian.com/business/marketforceslive/2012/apr/05/ashmore-exults-as-man-group-falters">Continue reading...</a>BusinessAshmoreManThu, 05 Apr 2012 09:18:45 GMThttp://www.theguardian.com/business/marketforceslive/2012/apr/05/ashmore-exults-as-man-group-faltersJosephine Moulds2012-04-05T09:18:45ZApple effect boosts iPad chip designer Armhttps://www.theguardian.com/business/marketforceslive/2012/jan/25/apple-boost-ipad-chip-arm
US gadget-maker's stellar numbers revive speculation of potential takeover of UK firm<p>The Apple effect shows no sign of wearing off - which is excellent news for component designer Arm Holdings.</p><p>The UK group was one of the top FTSE risers in early trading this morning - and it didn't even have to utter a word to achieve the bounce. Instead, all the talking was done last night by executives in Cupertino, California, where Apple smashed Wall Street expectations with a set of stellar earnings, which have now boosted the shares in the London-listed company which designs the mobile chips in the iPad.</p> <a href="https://www.theguardian.com/business/marketforceslive/2012/jan/25/apple-boost-ipad-chip-arm">Continue reading...</a>ARMBusinessAppleComputingTablet computersTechnologyAshmoreSchrodersHendersonAberdeen Asset ManagementWed, 25 Jan 2012 14:09:00 GMThttp://www.theguardian.com/business/marketforceslive/2012/jan/25/apple-boost-ipad-chip-armSimon Goodley2012-01-25T14:09:00ZAshmore steady despite volatile markets backdrophttps://www.theguardian.com/business/marketforceslive/2012/jan/12/ashmore-steady-despite-volatile-markets
Specialist emerging market investment group shows continued fund inflows, allaying concerns.<p>Emerging markets focused asset management group <strong>Ashmore</strong> has been vying for top spot on on the FTSE 100 leader board for much of the early afternoon after a flurry of analyst notes confirming the business had done a good deal to calm investors fears that the strong performing stock my be about to falter.</p><p>Assets under management were up 2.5% over the second quarter, the company revealed this morning, rising to $60.4bn after net inflows of $500m. Analysts at Killik &amp; Co were among those to suggest the figures were "slightly better than expected given the ongoing market uncertainty".</p> <a href="https://www.theguardian.com/business/marketforceslive/2012/jan/12/ashmore-steady-despite-volatile-markets">Continue reading...</a>AshmoreStock marketsThu, 12 Jan 2012 15:10:40 GMThttp://www.theguardian.com/business/marketforceslive/2012/jan/12/ashmore-steady-despite-volatile-marketsSimon Bowers2012-01-12T15:10:40ZITV gains but BSkyB loses after analyst report, while FTSE ends up on weekhttps://www.theguardian.com/business/marketforceslive/2012/jan/06/itv-gains-bskyb-loses-ftse-up
Morgan Stanley raises recommendation on ITV but warns of problems ahead for satellite broadcaster<p>Broadcasters <strong>ITV</strong> and <strong>BSkyB</strong> were heading in different directions after a hefty note on the media sector from Morgan Stanley.</p><p>The bank's analysts raised their recommendation on ITV from equal weight to overweight, with an 80p a share price target. They believe ITV may get off to a slow start for the year (although rival analysts at Deutsche Bank predicted a stronger advertising performance in the first quarter than previously expected) but said business should pick up after that.</p> <a href="https://www.theguardian.com/business/marketforceslive/2012/jan/06/itv-gains-bskyb-loses-ftse-up">Continue reading...</a>BusinessITVSky plcLloyds Banking GroupRoyal Bank of ScotlandManAshmoreGlaxoSmithKlineBurberryMitchells & ButlersSavillsFri, 06 Jan 2012 17:04:11 GMThttp://www.theguardian.com/business/marketforceslive/2012/jan/06/itv-gains-bskyb-loses-ftse-upNick Fletcher2012-01-06T17:04:11ZFTSE edges higher but Man Group hit by cautious commenthttps://www.theguardian.com/business/marketforceslive/2012/jan/06/ftse-higher-man-cautious
Ahead of the US non-farm payroll figures, markets move ahead, but asset managers under pressure<p>The market seems to be straining to head higher but hedge fund group <strong>Man</strong> is missing out.</p><p>The company is down 4.2p at 118.8p, making it the biggest faller in the leading index, as a number of brokers turn negative on the asset management sector. JP Morgan was cautious on Man, saying consensus forecasts implied what looked like an unlikely level of performance at the start of the year. It said:</p> <a href="https://www.theguardian.com/business/marketforceslive/2012/jan/06/ftse-higher-man-cautious">Continue reading...</a>BusinessManAshmoreEurasian Natural Resources CorporationBurberryBlacks LeisureFri, 06 Jan 2012 09:37:24 GMThttp://www.theguardian.com/business/marketforceslive/2012/jan/06/ftse-higher-man-cautiousNick Fletcher2012-01-06T09:37:24ZRolls-Royce leads risers but FTSE falls on banking and China worrieshttps://www.theguardian.com/business/marketforceslive/2011/oct/13/rolls-rises-ftse-banking-worries
<p><strong>Rolls-Royce</strong> was the leading riser in a falling market, climbing nearly 10% as investors welcomed a restructuring of its business which should give it a $1.5bn windfall and improve its trading position.</p><p>The aero-engine maker will receive the cash after agreeing to sell its share of IAE - which makes the V2500 engine for the A320 Airbus - to its partner Pratt &amp; Whitney. At the same time the two companies have agreed a new joint venture to develop engines for the next generation of aircraft to replace existing fleets. Mark King, president of Rolls' civil aerospace business, said:</p> <a href="https://www.theguardian.com/business/marketforceslive/2011/oct/13/rolls-rises-ftse-banking-worries">Continue reading...</a>BusinessRolls-RoyceLloyds Banking GroupRoyal Bank of ScotlandBarclaysAntofagastaKazakhmysAshmoreHargreaves LansdownManITVRenishawThu, 13 Oct 2011 16:05:57 GMThttp://www.theguardian.com/business/marketforceslive/2011/oct/13/rolls-rises-ftse-banking-worriesNick Fletcher2011-10-13T16:05:57ZRolls-Royce roars ahead 6% after $1.5bn deal with partner Pratt & Whitneyhttps://www.theguardian.com/business/marketforceslive/2011/oct/13/rolls-royce-engine-deal
<p><strong>Rolls-Royce</strong> is the leading riser in a hesitant market, up more than 6% as investors had their first chance to react to a couple of major initiatives announced late on Wednesday.</p><p>The aero-engine maker will receive $1.5bn in cash after agreeing to sell its share of IAE - which makes the V2500 engine for the A320 Airbus - to its partner Pratt &amp; Whitney. At the same time the two companies have agreed a new joint venture to develop new engines for the next generation of aircraft to replace existing fleets. Mark King, president of Rolls' civil aerospace business, said:</p> <a href="https://www.theguardian.com/business/marketforceslive/2011/oct/13/rolls-royce-engine-deal">Continue reading...</a>BusinessRolls-RoyceAshmoreHargreaves LansdownManBPThu, 13 Oct 2011 08:22:53 GMThttp://www.theguardian.com/business/marketforceslive/2011/oct/13/rolls-royce-engine-dealNick Fletcher2011-10-13T08:22:53ZPrudential puts on 1.5% on vague bid talk, while FTSE edges higher on Greek hopeshttps://www.theguardian.com/business/marketforceslive/2011/sep/13/prudential-bid-talk-ftse-higher
<p>It's a week of anniversaries, from the 9/11 terrorist attacks in 2001 to the run on Northern Rock in 2007 and the collapse of Lehman Brothers a year later.</p><p>And exactly a year ago to the day <strong>Prudential</strong> shares moved sharply higher on talk of possible bid interest from China. As the market moved ahead on cautious optimism about the Eurozone crisis, the exact same tale came round again, with traders hearing talk of a takeout price of around 720p for the insurer. This was enough to push Pru shares 8.5p higher to 576.5p but Manoj Ladwa, senior trader at ETX Capital, said:</p><p>I find it incredible that no names have been mentioned but an entire nation, and yet a specific price is being talked about.</p><p>We had previously highlighted the potential of a counter-bid. However, given it has been 20 days since the offer was announced we believe that the probability of a counter-bid is very low.</p><p>The apparent failure of the Comet sale process is not the end of the road for Kesa and we estimate that the collapse in the share price now discounts £500m, or more than 11 years, of losses or exit costs for Comet and its other developing businesses. While the market now fully understands and discounts the strategic and operational issues surrounding the consumer electronics retailers, unlike peers, Kesa has strong balance sheet and cash generation, freehold assets and an activist shareholder. It is thus the lowest risk and the most likely to find a solution. Ahead of what could be a turbulent first quarter update and annual meeting on Thursday we reiterate buy with a 120p target price.</p><p>With the interims so close (September 27) Game could have been excused if they had just laid low, but they must believe in the strength of the new games, although Game are also always bullish/too bullish about such matters. But even if Game is half right, the shorts would be squeezed, despite the fact that the share price has been destroyed of late. Below 20p, it is telling us that big profit downgrades lie ahead and the latest Chart-Track data in MCV magazine shows that software sales were 20% down last month on last year, which does not augur well for the Game current trading update. But after a dismal first half, Christmas will now make or break the year. We recognise that our pretax profit forecast of £27.5m for this year will have to come down, but even so we struggle to justify the current derisory valuation of Game. So although we sit on the fence with our neutral view on Game, ahead of the interims, we sense that the next big move in the share price should be up.</p><p>We continue to believe – as does consensus - that Ocado will not make an adequate return on capital for the foreseeable future, and that it will struggle to generate cash. This has obvious medium term implications and means that the shares continue to have downside potential. At 50p, Ocado's enterprise value to sales ratio would still be nearly twice that of Sainsbury's.</p><p>Ocado is to report third quarter sales numbers on September 19. The few forecasts that we have seen expect that sales will have been impacted by capacity constraints, and that gross sales growth will perhaps be a bit lower than the 18% generated in the second quarter.</p> <a href="https://www.theguardian.com/business/marketforceslive/2011/sep/13/prudential-bid-talk-ftse-higher">Continue reading...</a>BusinessPrudentialRoyal Bank of ScotlandBarclaysLloyds Banking GroupAutonomySageCairn EnergyAshmoreDartyGame DigitalOcadoTue, 13 Sep 2011 16:27:51 GMThttp://www.theguardian.com/business/marketforceslive/2011/sep/13/prudential-bid-talk-ftse-higherNick Fletcher2011-09-13T16:27:51ZAshmore loses 5% as profits disappoint ahead of FTSE 100 entryhttps://www.theguardian.com/business/marketforceslive/2011/sep/13/ashmore-drops-profits-disappoint
<p>It's probably lucky for <strong>Ashmore</strong> it did not release its full year results a few days ago, given the market reaction to the figures.</p><p>The fund manager is set to move up from the mid-cap index to the FTSE 100, based on last Tuesday's closing price. But a week later - and despite a 13% rise in profits to £264m - its shares have slumped 5%, down 21p to 378.9p, a decline which might have made its promotion to the leading index a little more uncertain. Part of the reason is that following recent rises, it trades at a premium to other listed fund managers.</p> <a href="https://www.theguardian.com/business/marketforceslive/2011/sep/13/ashmore-drops-profits-disappoint">Continue reading...</a>BusinessAshmoreTue, 13 Sep 2011 11:35:26 GMThttp://www.theguardian.com/business/marketforceslive/2011/sep/13/ashmore-drops-profits-disappointNick Fletcher2011-09-13T11:35:26Z